Last week I talked about your big hairy audacious goals and left off with… can you get there from here?
So this week I want to talk about… can I get there from here?
I threw out the principal of creating a void to grow your business. I used my wife’s closet as an example of filling the void and I know I got a chuckle from many of you who said, “I can relate to that!” There was a little humor in the statement and to many of you that was a weird statement. And to some of you I know you probably said this guy is crazy.
I really wanted to talk about that a little more this week because it is a true principal that actually works all the time. Creating a void to actually have it fill up again.
I want to go little bit deeper into that this week so that you might have another way to approach your thinking on your business growth in contrast to what normal thinking is.
And what is normal thinking?
You go and you create your growth plan, you set your goals and you go full steam ahead after your goals, which is all well and good. But if everything is already full, your schedule is full, your business is busting out at the seams and you have to add employees (which is good) and that gets to be full.
You are growing and your revenue keeps going up, all of these are good things IF you are making the profit you need to keep the business going. It is creating the profit you need to create the lifestyle you want, or in some of your cases, the profit you need to pay your bills and stay in business.
So when you take a look at planning, setting your goals and figuring out your business for growth, most people do nothing about trimming their business creating that void. Another way we can look at this is trimming out the C and D customers, the ones that are always complaining in order to make room for the new A and B customers, the ones that you charge more, the ones who appreciate you and the value you give them. These are the ones that refer you to their friends… you know “the friends” that are like minded, the ones who don’t nickel and dime you about price. They actually see the value that you are giving them and they love you.
How do you get rid of those complaining customers who don’t want to spend money? There are actually 2 ways… there might be more but I’m just going to give you 2 today.
First one, when they call tell them you have had to raise your prices to keep up with expenses, and tell them how much. Make it significant enough so that it will take care of their complaining. They will usually opt out on their own.
#2 is my favorite, tell them you are extremely busy and booked out until whenever you want and refer them to your biggest competitor. Why? If they are your biggest competitor and you send them referrals they will be busy chasing leads on real possible customers they will not have time to go head to head with you on doing estimates in the area you do a lot of business.
They both work and you have solved the problem of whining, complaining cheap clientele.
Creating the void is like trimming trees. The same principal used to make plants grow. Especially in wine orchards they cut off the branches that are weak to make room for the newer shoots to grow. It’s also like if you clean roofs and you have some roof mix burn some leaves on the plants, you get rid of the bad leaves so the new buds will have room to grow out.
This is a real and proven principal.
I found out a lot about this in one of the books that I’ve read that actually has changed my thinking, “You’re Broke Because You Want to Be: How to Stop Getting By and Start Getting Ahead” by Larry Winget.
Not that I want to say you’re broke because you want to be, even though it’s a fact. I want to tell you one of the take always from the book that helped me change my thinking. The one take away that I got from the book that I wrote down and then I keep on my desk and look at it all the time the principle is true in every area of your life in your business life, you financial, personal, and if you want to lose weight it even reaches into that area also.
The take away I want you to think about is… what do I have to give up to get what I want?
It’s pretty simple but profound. If you create a void, you get rid of low margin business to bring on high profit business. The void fills itself up. You remove a low productive employee and replace them with a very productive employee. And the list goes on.
So the question in the beginning was, “can I get there from here?”
It all depends on what am you are willing to give up to get what you want.
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